Powell was hawkish today:
“There is an obvious need to move expeditiously to return the stance of monetary policy to a more neutral level, and then to move to more restrictive levels if that is what is required to restore price stability,” Mr. Powell said during remarks to a conference of business economists.
…
“If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so,” Mr. Powell said. “And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”Asked what would keep the Fed from raising interest rates by half a percentage point at its next meeting in May, Mr. Powell replied, “Nothing.” He said the Fed had not yet made a decision on its next rate increase but noted that officials would make a supersized move if they thought one was appropriate.
“The expectation going into this year was that we would basically see inflation peaking in the first quarter, then maybe leveling out,” Mr. Powell said. “That story has already fallen apart. To the extent that it continues to fall apart, my colleagues and I may well reach the conclusion that we’ll need to move more quickly.”
… and the GOC-5 yield jumped to 2.18%.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
|||||||
| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 3.25 % | 3.81 % | 29,516 | 19.60 | 1 | -0.5157 % | 2,747.9 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.3306 % | 5,228.7 |
| Floater | 3.36 % | 3.35 % | 61,807 | 18.87 | 3 | -0.3306 % | 3,013.3 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.6168 % | 3,617.5 |
| SplitShare | 4.74 % | 4.44 % | 30,653 | 3.39 | 7 | -0.6168 % | 4,320.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.6168 % | 3,370.6 |
| Perpetual-Premium | 5.34 % | -1.27 % | 61,281 | 0.08 | 17 | -0.2207 % | 3,190.2 |
| Perpetual-Discount | 5.09 % | 5.17 % | 64,948 | 15.13 | 16 | -0.0984 % | 3,628.6 |
| FixedReset Disc | 4.20 % | 4.88 % | 119,968 | 15.68 | 46 | -0.7987 % | 2,699.8 |
| Insurance Straight | 5.09 % | 4.76 % | 91,862 | 15.25 | 18 | -0.1216 % | 3,524.7 |
| FloatingReset | 3.12 % | 3.46 % | 41,253 | 18.63 | 2 | 0.1707 % | 2,857.0 |
| FixedReset Prem | 4.75 % | 3.56 % | 146,569 | 1.99 | 23 | 0.0851 % | 2,704.7 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7987 % | 2,759.7 |
| FixedReset Ins Non | 4.19 % | 4.84 % | 71,971 | 15.88 | 15 | 1.2320 % | 2,865.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| TRP.PR.G | FixedReset Disc | -45.74 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 12.29 Evaluated at bid price : 12.29 Bid-YTW : 9.44 % |
| TD.PF.D | FixedReset Disc | -10.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 21.50 Evaluated at bid price : 21.50 Bid-YTW : 5.42 % |
| BAM.PF.E | FixedReset Disc | -3.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 5.65 % |
| IFC.PR.E | Insurance Straight | -3.35 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.97 Evaluated at bid price : 24.25 Bid-YTW : 5.37 % |
| CU.PR.E | Perpetual-Discount | -3.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.41 Evaluated at bid price : 23.70 Bid-YTW : 5.20 % |
| CU.PR.J | Perpetual-Premium | -2.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.08 Evaluated at bid price : 23.50 Bid-YTW : 5.08 % |
| PVS.PR.F | SplitShare | -1.80 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2024-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 4.73 % |
| PVS.PR.H | SplitShare | -1.76 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2027-02-28 Maturity Price : 25.00 Evaluated at bid price : 25.10 Bid-YTW : 4.67 % |
| GWO.PR.N | FixedReset Ins Non | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 16.06 Evaluated at bid price : 16.06 Bid-YTW : 4.85 % |
| TRP.PR.E | FixedReset Disc | 1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 19.92 Evaluated at bid price : 19.92 Bid-YTW : 5.59 % |
| MFC.PR.Q | FixedReset Ins Non | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 24.40 Evaluated at bid price : 24.75 Bid-YTW : 4.76 % |
| CM.PR.P | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.16 Evaluated at bid price : 22.55 Bid-YTW : 4.82 % |
| CM.PR.Q | FixedReset Disc | 1.06 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.86 Evaluated at bid price : 23.85 Bid-YTW : 4.80 % |
| FTS.PR.G | FixedReset Disc | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 21.42 Evaluated at bid price : 21.75 Bid-YTW : 4.95 % |
| PWF.PR.K | Perpetual-Discount | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.98 Evaluated at bid price : 24.23 Bid-YTW : 5.17 % |
| NA.PR.W | FixedReset Disc | 1.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.09 Evaluated at bid price : 22.45 Bid-YTW : 4.83 % |
| BIP.PR.E | FixedReset Prem | 1.20 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2023-03-31 Maturity Price : 25.00 Evaluated at bid price : 25.30 Bid-YTW : 3.66 % |
| FTS.PR.J | Perpetual-Discount | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.60 Evaluated at bid price : 23.87 Bid-YTW : 5.01 % |
| BIP.PR.A | FixedReset Disc | 1.34 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.61 Evaluated at bid price : 23.36 Bid-YTW : 5.74 % |
| FTS.PR.K | FixedReset Disc | 1.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 20.88 Evaluated at bid price : 20.88 Bid-YTW : 5.04 % |
| BAM.PF.G | FixedReset Disc | 1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 21.42 Evaluated at bid price : 21.75 Bid-YTW : 5.37 % |
| MFC.PR.J | FixedReset Ins Non | 1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 24.28 Evaluated at bid price : 24.70 Bid-YTW : 4.82 % |
| RY.PR.Z | FixedReset Disc | 1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.77 Evaluated at bid price : 23.08 Bid-YTW : 4.67 % |
| IFC.PR.C | FixedReset Disc | 1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.33 Evaluated at bid price : 23.05 Bid-YTW : 4.83 % |
| MFC.PR.K | FixedReset Ins Non | 1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.00 Evaluated at bid price : 23.43 Bid-YTW : 4.67 % |
| PWF.PR.T | FixedReset Disc | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.87 Evaluated at bid price : 23.23 Bid-YTW : 4.88 % |
| BIP.PR.F | FixedReset Prem | 1.77 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2023-12-31 Maturity Price : 25.00 Evaluated at bid price : 25.28 Bid-YTW : 4.38 % |
| CM.PR.O | FixedReset Disc | 2.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.36 Evaluated at bid price : 22.75 Bid-YTW : 4.83 % |
| SLF.PR.G | FixedReset Ins Non | 2.19 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 17.27 Evaluated at bid price : 17.27 Bid-YTW : 4.73 % |
| CU.PR.C | FixedReset Disc | 2.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.03 Evaluated at bid price : 22.60 Bid-YTW : 5.04 % |
| IFC.PR.G | FixedReset Ins Non | 2.29 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 24.23 Evaluated at bid price : 24.60 Bid-YTW : 4.79 % |
| TRP.PR.A | FixedReset Disc | 2.81 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 5.58 % |
| MFC.PR.L | FixedReset Ins Non | 2.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 21.51 Evaluated at bid price : 21.88 Bid-YTW : 4.86 % |
| ELF.PR.G | Perpetual-Discount | 3.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 23.25 Evaluated at bid price : 23.55 Bid-YTW : 5.11 % |
| IFC.PR.A | FixedReset Ins Non | 3.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 20.00 Evaluated at bid price : 20.00 Bid-YTW : 4.84 % |
| MFC.PR.M | FixedReset Ins Non | 3.91 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.38 Evaluated at bid price : 22.86 Bid-YTW : 4.82 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| TRP.PR.D | FixedReset Disc | 81,750 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 20.15 Evaluated at bid price : 20.15 Bid-YTW : 5.61 % |
| MFC.PR.L | FixedReset Ins Non | 68,240 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 21.51 Evaluated at bid price : 21.88 Bid-YTW : 4.86 % |
| IFC.PR.K | Perpetual-Premium | 38,623 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 24.65 Evaluated at bid price : 25.05 Bid-YTW : 5.26 % |
| TRP.PR.E | FixedReset Disc | 31,556 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 19.92 Evaluated at bid price : 19.92 Bid-YTW : 5.59 % |
| GWO.PR.G | Insurance Straight | 30,100 | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-04-20 Maturity Price : 25.00 Evaluated at bid price : 25.00 Bid-YTW : 3.31 % |
| CM.PR.P | FixedReset Disc | 22,450 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2052-03-21 Maturity Price : 22.16 Evaluated at bid price : 22.55 Bid-YTW : 4.82 % |
| There were 9 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| TRP.PR.G | FixedReset Disc | Quote: 12.29 – 22.92 Spot Rate : 10.6300 Average : 5.7455 YTW SCENARIO |
| TD.PF.D | FixedReset Disc | Quote: 21.50 – 24.15 Spot Rate : 2.6500 Average : 1.7505 YTW SCENARIO |
| SLF.PR.G | FixedReset Ins Non | Quote: 17.27 – 19.00 Spot Rate : 1.7300 Average : 1.0246 YTW SCENARIO |
| CU.PR.E | Perpetual-Discount | Quote: 23.70 – 24.70 Spot Rate : 1.0000 Average : 0.6290 YTW SCENARIO |
| BAM.PR.B | Floater | Quote: 14.09 – 15.00 Spot Rate : 0.9100 Average : 0.5774 YTW SCENARIO |
| BAM.PF.E | FixedReset Disc | Quote: 20.00 – 21.19 Spot Rate : 1.1900 Average : 0.8915 YTW SCENARIO |
[…] This adds to the hawkish talk that started the week. […]